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What is Debit balance and Credit Balance?

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Question added by Rajkumar Achuthanandam , Accountant General , Al Hadaf Marketing L.L.C
Date Posted: 2015/07/18
Iqbal Hossain
by Iqbal Hossain , Asst. General Manager , Green Bird Properties Ltd

  1. When you receive cash it will credit and when you spend that will be debit. 

Mohammed Asim Nehal
by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

Entries to the left side of the account are debits (DR), and accounts with left sided balances (asset accounts and expense accounts) are debit accounts. Entries to the right side of the account are credits (CR), and accounts with right sided balances (liability accounts, owners' equity accounts, and revenue and profit accounts) are credit accounts. Understanding debit and credit is essential for bookkeeping and analysis of balance sheets.

 

  •  debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry.
  • credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry.

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